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CC Resolution No. 1208 2327 RESOLUTION NO. 1208 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ADOPTING GUIDELINES FOR THE HOMEBUYERS ASSISTANCE PROGRAM; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the Homeowners Assistance Program is designed to assist families procure affordable housing by providing funds to assist with closing cost and partial downpayments; and WHEREAS, the Homeowners Assistance Program will assist in the stabilization of neighborhoods; and WHEREAS, the Homeowners Assistance Program will assist in furthering the recommendations of the City of Baytown Comprehensive Plan and the recently completed Enterprise Zone Revitalization Plan; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, adopts the Homebuyers Assistance Program Guidelines in accordance with the terms and provisions set out in said guidelines attached hereto as Exhibit "A" which is incorporated herein and made a part hereof for all purposes. Section 2 : This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 24th day of February, 1994 . c PETE C. ALFARO, Mayor ATTEST: EILEEN P. HALL, City Clerk ACIO RAMIRE S . , City Attorney legal/council/2-24-94m&ADOPTguidchi 2328 Homebuyers Assistance Program Guidelines I. Purpose The Homeowners Assistance Program is designed to assist families procure affordable housing by providing funds to assist with closing cost and partial downpayments while also assisting in the stabilization of neighborhoods. II. Eligibility Requirements To be eligible to receive assistance applicants must meet the following requirements: 1. Meet the low and moderate income guidelines as established by the Department of Housing and Urban Development. 2 . Do not currently own and have not owned a house within the past three years. 3 . Must reside in Baytown or be employed by a business located and operating in one of Baytown's Enterprise Zones. 4. Property being purchased must be within the City limits of Baytown. 5. Successful completion of the Houston Housing Partnership Homeownership Counseling Program or a similar previously approved counseling program. 6. Applicant must be 18 or older and be a citizen of the United States. 7. Applicant must be able to obtain financing from a private or public lending source. III. Type of Assistance 1. Type of assistance provided include payment of downpayment and closing costs in the form of a forgivable loan. 2 . The amount of assistance will be forgiven after the buyer has lived in the house for five years. 3. A five year lien will be placed on the property for security. 4 . Within the five year period, upon sale, transfer of EXHIBIT A 2329 title or cessation of owner-occupied status, the assistance loan shall immediately be due and payable. 5 . In no case will the loan be assumable by the next purchaser. 6. In the event the applicant refinances the original loan and the new lender does not accept the City's lien, the pro-rata share of the loan must be repaid before the lien is removed. IV. Level of Assistance 1. only actual closing costs and required downpayment expenses would be eligible. Home warranty (mechanical inspection, termite inspection etc. ) is an allowable expense. 2 . The maximum amount of eligible assistance would vary depending upon whether the property to be purchased is located within an Enterprise Zone. a. Within a Zone the maximum amount shall be $4000. 00 b. Outside of a Zone the maximum amount shall be $3000 . 00. V. Priority Priority shall be given to three categories of income- eligible households: 1. Those who are applying to purchase the house which they currently rent. 2 . Those who have been participating in and have successfully completed the Baytown Housing Authority's Family Self-Sufficiency Program. 3. Those who reside within the Enterprise one at the time of application. VI. Security 1. The Homeowners Assistance loan will be secured by a five year lien on the property. 2. The Homeowners Assistance loan proceeds will be dispersed at loan closing. 3 . Forgiveness of the loan will be pro-rated for five years. Twenty percent the first year. . . forty percent the second year. . . sixty percent the third year. . . eighty percent the fourth year and completely forgiven the fifth year.